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Global banking giant HSBC has agreed to pay $ 1.9 billion to settle U.S. government charges of lax money-laundering compliance practices that allegedly violated the Bank Secrecy Act, BSA, and allowed hundreds of millions of dollars from Mexican drug-trafficking organizations to flow through U.S. bank accounts. The settlement also resolves investigations by U.S. agencies into HSBC’s apparent violations of transaction and sanction regulations involving Iran, Burma, Sudan, Cuba and Libya, according to the government. The U.S. Treasury Department said in a statement that HSBC “failed to help secure the United States financial borders and left dangerous gaps that international drug [...]

U.S. consumer sentiment stalled at the end of November as uncertainty grew over federal tax and spending programs next year, a survey released on Wednesday showed. The Thomson Reuters/University of Michigan’s final reading on the overall index on consumer sentiment came in at 82.7, a touch up from 82.6 the month before, but down from a preliminary reading of 84.9 released earlier in the month. It was below the median forecast of 84.5 among economists polled by Reuters. “The late-month retreat was accompanied by more economic uncertainty about future federal taxes and spending programs and the inability of the political [...]

If you pay your credit card bill late, you face a penalty fee from your credit card company and potentially an interest rate hike. Even more troubling, your credit score suffers, which could limit your ability to qualify for the best credit card rates. But all is not lost. You can soften the blow of a late payment history on your credit score by getting current on your bills as soon as possible. And under the new federal credit card regulations, your credit card company must terminate the penalty rate increase after six months if you’ve made all the minimum [...]

The number of consumers failing to pay their credit-card bills on time fell to the lowest level in 11 years during the second quarter, as people continued to save more and borrowed less. Bank card delinquencies dropped below 3% of accounts for the first time since 2001, falling about 15 points to 2.93% of all accounts and well below the 15-year average of 3.91%, according to a report by the American Bankers Association. The ABA report defines a delinquency as a late payment that is at least 30 days overdue. “Economic uncertainty has made consumers hesitant to take on new [...]

If you’re in your 40s and don’t have a retirement plan, it’s time to start thinking about one. As you get older, unforeseen expenses in your life can make saving difficult. While it’s beneficial to start saving in your 20s, it’s never too late to start planning. Max out your 401(k): The first step in your emergency retirement planning efforts should be to max out your company’s 401(k) plan, if it offers one. Contribute as much as you can possibly afford. The maximum limit for 2012 is $ 17,000 for employees up to age 50. Be sure to get the [...]

Emerging markets funds were once at the far periphery of portfolio allocation strategies. It’s hard to imagine now, but 30 years ago, China was barely a blip on the world’s radar screen, Russia was still locked into the dead-end economics of the Soviet Union and Latin America was better known for unstable military juntas than for world-class private enterprises. How times have changed. Emerging markets have—for all intents and purposes—emerged to be the growth engine powering the world economy. Emerging markets funds have moved to a core asset class—perhaps still with a lower allocation weighting than U.S. equities, but with [...]

Dear Tax Talk, My grandparents are now deceased. They had a number of savings bonds. How is the savings bond interest reported? The original purchase price was approximately $ 33,000. Interest accumulated to date is approximately $ 80,000. The six heirs will divide the bonds. Is the interest accumulated from the savings bonds until the date of death used on the last personal tax Form 1040? Or is all the interest received from them placed on the final estate taxes? Thank you. — Marcia Dear Marcia, There are generally two ways to report the interest on U.S. savings bonds: Annually [...]

As a general rule, older people have been more victims than beneficiaries of today’s low interest rates. However, some may turn that around by taking a fresh look at refinancing. Due to a combination of factors, refinancing is no longer just for younger homeowners. Retirees today may find refinancing their home a sensible option, but there are a few questions they should ask themselves before they commit. Conventional wisdom — and a twist Conventional wisdom has long been that it doesn’t pay to refinance if you are not going to be in your house much longer. That tended to leave [...]

Rain and cooler temperatures in the drought-stricken U.S. Midwest crop belt will provide relief for late-season soybeans, but the change in the weather is arriving too late to help the already severely damaged corn crop, an agricultural meteorologist said on Wednesday. “It’s definitely better than what we’ve had but I’d be hesitant to call it a drought-buster. Longer-term outlooks still look like a return to warm and dry,” said Jason Nicholls, meteorologist for AccuWeather. Nicholls said 0.25 inch to 0.75 inch of rain, with locally heavier amounts, was expected in roughly 75 percent of the Midwest from Wednesday through Friday [...]